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Daily Mirror
Daily Mirror
Politics
Oliver Milne

What time is the Budget today, where can I watch it and what are we expecting to be in it?

Boris Johnson's government will face its first big financial test today - as Chancellor Rishi Sunak delivers his first Budget.

It comes as a chaotic time - with the UK battling the coronavirus and stepping up trade negotiations with the EU.

The annual statement will pay attention to  your pay, pensions, taxes and more.

But novice Chancellor Rishi Sunak will also be forced to address the onset of the coronavirus in the UK.

Mr Sunak's budget is happening in a tumultuous time (Simon Walker HM Treasury)

No10 insiders insist the Budget will not downgrade spending plans, despite the COVID-19 virus sending stock markets plummeting. But it will have extra measures to deal with the virus. 

So when is the Budget, why is it so important and what might it mean for your money?

(Simon Walker HM Treasury)

When is the budget and where can I watch it?

Chancellor Rishi Sunak will stand up to deliver his budget at 1230 on Wedneday March 11.

The speech notmally lasts for about an hour - but the range of issues that it could cover - from manifesto promises to the coronavirus - means this one could last longer.

Jeremy Corbyn will then respond for Labour .

First and foremost you can follow budget coverage on our live blog.

(Simon Walker HM Treasury)

Live coverage of the Budget begins at 11.15am on BBC Two, presented by Andrew Neill, and lasts until 3.00pm to take in all the fallout and reaction from the speech.

You can also watch it live on the BBC News Channel on Sky channel 503, Virgin Media channel 601 or Freeview channel 107 for HD, and 231 for SD, or catch it all on BBC iPlayer .

Sky News can be found on Freeview channel 233, Sky channel 501 and Virgin Media channel 602, or live on YouTube.

What is the Budget?

A statement made by the Chancellor of the Exchequer on his plans for tax, public spending and economic forecasts.

It sets key duties on fuel, cigarettes and alcohol as well as the minimum wage.

MPs vote on whether to accept it. In past times this would be a controversial vote, but Boris Johnson has a majority of 80 so it's almost guaranteed to pass.

What happens on budget day?

The famous red box houses the budget speech (Chris J Ratcliffe)

On the morning of the Budget, the Chancellor will depart Number 11 Downing Street, the official residence of the Chancellor of the Exchequer, with the red Budget box containing his Budget speech.

The Chancellor presents the Budget to the House of Commons in a speech setting out the government’s plans at 12.30pm, straight after Prime Minister’s Questions. At the end of the Chancellor’s speech the Leader of the opposition has an opportunity to respond before MPs debate the contents of the Budget for the rest of the day.

After the Chancellor has delivered his speech, HM Treasury publish a number of documents to help explain the government’s changes and the impact these changes are likely to have.

How will Coronavirus affect the Budget?

Containing coronavirus will feature in the budget (PA)

Coronavirus will, without doubt, affect the Budget.

And not just the fact it's sent stock markets tumbling - there's also the fact of dealing with the outbreak.

It's not yet known if there will be cash for the hard-pressed NHS. Officials argue cash is not the only factor, and the NHS has already been given a boost under Boris Johnson (after years of tight purse strings).

When it comes to business disruption, however, it looks like we'll see something.

Ministers have already expanded sick pay to the first day people are off sick, not the fourth. But unions say it must go further by applying to the low-waged and self-employed who aren't eligible.

An official suggested the Budget may well go further, saying the self-employed were "lucky there’s a budget on Wednesday" and telling Playbook: "People would expect us to put measures in place to help public services, businesses and - yes - individuals.”

Meanwhile, the Chancellor has said he is ready to take "targeted" measures to help businesses get through the coronavirus outbreak.

Rishi Sunak suggested his financial plan would now focus on the "economic security" of the country, as he warned that the economy could suffer a "supply shock" if lots of people fall ill.

Mr Sunak, who has been in office for less than a month, said: "We need to look at what are the interventions that we need to help bridge a difficult period.

"That's where we might look at some targeted options to help ease the strain on cash flows for a certain period to help them get through to the other side.

"Obviously, alongside the supply shock there will likely be an impact on demand if people are at home."

Budget 2020 confirmed policies

Mr Sunak is seen as politically close to Boris Johnson (AFP via Getty Images)

Minimum wage

The minimum wage for over-25s will rise by 51p to £8.72 an hour from April.

It will also rise to £8.20 (age 21 to 24), £6.45 (18 to 20), £4.55 (under 18) and £4.15 (apprentice).

Normally the Budget might be the first time we find out about these rises, but this year's is being held unusually close to April 1 so it's already been announced.

Inheritance Tax

The Tories have repeatedly cut Inheritance Tax, to the point you can now leave £475,000 to your relatives tax-free (£950,000 for a married couple).

From April 2020 that is due to hit £500,000, making the tax-free sum for married couples a cool £1million.

National Insurance

From April, you will pay no national insurance contributions on the first £9,500 of your earnings - up from £8,632 at the moment - working out as a saving of around £85 a year.

The move has been criticised for falling short of the £500-a-year Boris Johnson promised, and only helping better earners who are already over the threshold.

Meanwhile, the Chancellor will also raise the Employment Allowance - the amount employers can get off their overall National Insurance bill - from £3,000 to £4,000 per year. But the eligibility criteria is being tightened at the same time - only firms with a Class 1 National Insurance bill below £100,000 can qualify.

End of the tampon tax

The tampon tax is set to end (PA)

The government is expected to abolish the 5% VAT charged on women's sanitary products during the Budget, with a zero rate of VAT applying from the start of next year.

The Treasury estimates the move will save the average woman nearly £40 over her lifetime, with a cut of 7p on a pack of 20 tampons and 5p on 12 pads.

But since 2015 the money raised by the hated charge on tampons and sanitary towels, which couldn't be abolished while the UK was in the EU, has been used to fund a charity pot for women's groups. Charities say the money for that should keep rolling in.

Infrastructure funding

The Chancellor will today promise to increase infrastructure spending on major projects including road, railways and housing.

He will set out Tory plans to “level up” the economy despite fears coronavirus could mean election pledges fall by the wayside.

Boris Johnson promised to invest in the “red wall” towns across the North and Midlands after the Tories won the election. 

Sources suggested Mr Sunak could promise a total £600bn for capital spending by the middle of 2025.

Flood defence funding doubled

Funding for flood defences is expected to be doubled to £5.2 billion. The investment will help to build 2,000 new flood and coastal defence schemes and better protect 336,000 properties in England over the next six years.

Chancellor Rishi Sunak said communities in Britain have been "hit hard" by severe flooding this winter, saying it is "right that we invest to protect towns, families, and homes across the UK".

The funding - which doubles the £2.6 billion spent on flood defences between 2015 and 2021 - is expected to be targeted in every region, and will be available from next April.

It comes after Boris Johnson was slammed for not visiting flood victims quickly enough.

Superfast broadband

(PA)

A £5 billion by 2025 programme of super-fast broadband will be announced in the Budget.

Chancellor Rishi Sunak will confirm the plan in Wednesday's Budget speech - alongside a £1 billion deal to boost 4G mobile phone signal across the country.

The deal will provide extra coverage to 280,000 premises and 16,000km of roads, the Treasury said.

Changes to parental leave for parents with sick babies

Parents of sick newborn babies will be able to claim a new neonatal pay and leave entitlement under measures set to be announced by the Chancellor.

Rishi Sunak will outline plans to allow new mothers and fathers to claim statutory paid leave for every week their child is in neonatal care, up to a maximum of 12 weeks, when he delivers his first Budget on Wednesday.

Treasury Minister Kemi Badenoch said the cost of the leave - to be paid at a rate of around £160 per week - would almost entirely be incurred by the Government, rather than business.

Growth forecasts - but they may be out of date

(AFP)

The Budget will provide forecasts from the independent Office for Budget Responsibility on GDP growth, debt and borrowing for the next five or so years.

All in Westminster will be watching closely to see how these compare to the previous forecasts in 2018.

But there's an added element this year - the OBR inevitably takes some time to put its projections together, so they may be out of date due to the rapid effect of the coronavirus.

Changes to the 'Green Book' and possibly more borrowing

Chancellor Rishi Sunak confirmed: "I will be on Wednesday outlining a review of what we called the Green Book.

"This is the manual that the government uses to allocate investment and make investment decisions."

This could re-weight spending to the north. Meanwhile, crucially, the Chancellor hasn't rule out rewriting 'fiscal rules' to allow him to borrow for day-to-day spending.

Domestic abuse courts

Domestic abuse courts are set to receive funding (Daily Record)

Special domestic abuse courts where criminal offences are heard alongside family law cases will be set up under a £5million trial to be unveiled in the Budget.

Chancellor Rishi Sunak plans to announce millions of pounds to crackdown on domestic abuse when he delivers his first Budget on Wednesday.

Measures include £10million to tackle “high-risk, high-harm perpetrators of domestic abuse through early interventions”.

Another move will see £5million pledged to pilot domestic abuse courts, which will hear family and criminal matters in parallel.

The Treasury believes the plan will offer victims better support.

Another £15million is designed to improve sex assault victims’ experiences in the justice system.

Hundreds of Treasury staff in the North, Wales and Northern Ireland

Mr Sunak said a fifth of Treasury staff would soon be based outside London. He told the BBC: "We will be opening a new economic campus in the north of England, and also opening offices for the first time in Wales and Northern Ireland."

Protecting the future of cash

Chancellor Rishi Sunak is poised to commit to new laws protecting the future of cash in the Budget.

The moves will aim to ensure that people who rely on cash, including vulnerable groups and local communities across the UK, can access it as and when they need it.

The Treasury is expected to start talks with the industry and regulators - the Bank of England, Financial Conduct Authority and Payment Systems Regulator - around legislation immediately after the March 11 Budget.

£5bn of export loans

The Chancellor will attempt to boost exports with £5bn of loans through UK Export Finance - raising its lending from £3bn to £8bn in total.

From the new pot, £2bn will be offered for exports that encourage green growth and another £1bn will go to the defence industry.

The pot includes "cross-government support" including multiple departments.

Budget 2020 predictions

Fuel duty

(PA)

Fuel duty has been kept at 57.95p per litre for petrol and diesel since 2011. Last year's freeze alone will cost the Treasury more than £4billion over five years.

Rumours have abounded that, finally, the rate will be raised.

But that would likely prompt a Tory revolt. More than a dozen newly-elected 'blue-collar' MPs warned "clobbering" working-class car drivers will "send the wrong message about this Government’s priorities."

Stamp Duty

Stamp duty changes could be coming (Getty Images)

The Budget could enact Boris Johnson's manifesto pledge to slap a 3% Stamp Duty surcharge on homes - when they're bought by foreign buyers.

The move was designed to deter precious homes in the UK being snapped up as investments for profit.

According to the Financial Times, the final rate could end up lower than 3% to reflect concern from property industry lobbyists. One buying agent complained it would "penalise" millionaires and slow down efforts to get the economy moving.

Entrepreneurs' relief

The Tory manifesto vowed to review and reform entrepreneurs' relief - a £3bn tax break that reduces Capital Gains Tax for people selling their business.

But business lobby groups were angry at rumours the relief could be scrapped altogether.

The Federation of Small Businesses said it would "destroy the retirements of thousands of business owners".

Labour on the other hand backed ending the relief, saying: "We said we would scrap the relief but turn it into a grant because then you would then get the productivity gains that everyone needs."

Northern infrastructure

The PM has said the government will invest in the north (EXAMINERLIVE/ WS)

Boris Johnson won a sweep of 'red wall' northern and Midlands seats in the general election . He has repeatedly promised to repay voters' trust with a string of big infrastructure projects.

Expect the Budget to make a big political play of help to these areas, despite the headwinds of Coronavirus.

But the devil will be in the detail. Will the Chancellor announce hard cash or will he merely announce 'reviews' and consultations with the promise of jam tomorrow?

Cigarettes and alcohol

Smokers are almost always hit at the budget (PA)

It's common for the Budget to put another penny or two on "sin taxes" - including cigarettes and alcohol. Final rates are confirmed on Budget Day and usually apply from that evening - prompting some to make a quick rush to the shops.

Income Tax

The Budget is the traditional time to make changes to Income Tax.

In Labour's day this revolved around introducing new rates for higher earners.

Since 2010 the focus has been on raising the tax-free personal allowance, which now stands at £12,500. Could it rise further?

Pensions tax relief

There was talk before the Budget of a massive £10bn raid on pensions tax relief by setting the rate to 20% for everyone.

However, later briefing suggested the idea was off the table. Nothing is formally confirmed.

Free school meals

It could be a deeply unpopular decision, and should seem unlikely from a supposed populist PM. But ministers dodged questions over whether the spending review - due later this year, not in the Budget - could scrap free school meals.

Schools Week revealed the programme for 1.4million infants had been "long-listed" as part of the spending review process.

Asked directly if they could be scrapped, minister Vicky Ford replied: "[You are] right to raise the issue of a healthy breakfast, because we know that a healthy breakfast helps children to concentrate, learn and reach their potential in life.

"That is why we are already investing up to £35 million in our breakfast clubs programme; 1,800 schools in more disadvantaged areas have already signed up."

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